NET INCOME PER SHARE

The Company has two classes of common stock. Class A common stock is entitled to cash dividends as declared 54% greater than those paid on Class B common stock. Shares of Class B common stock are convertible on a share-for-share basis for Class A common stock at any time.

The Company utilizes the two-class method of computing and presenting net income per share. The two-class method is an earnings allocation formula that calculates basic and diluted net income per share for each class of common stock separately based on dividends declared and participation rights in undistributed earnings. Under the two-class method, Class A common stock is assumed to receive a 54% greater participation in undistributed earnings than Class B common stock, in accordance with the classes' respective dividend rights. Unvested share-based payment awards that contain nonforfeitable rights to dividends are treated as participating securities and therefore included in computing net income per share using the two-class method.

Diluted net income per share for Class A common stock is calculated utilizing the if-converted method, which assumes the conversion of all shares of Class B common stock to Class A common stock on a share-for-share basis, as this method is more dilutive than the two-class method. Diluted net income per share for Class B common stock does not assume conversion of Class B common stock to shares of Class A common stock.

The tables below reconcile the numerators and denominators of basic and diluted net income per share for all periods presented.



	13 Weeks Ended					39 Weeks Ended
	April 25, 2020					April 25, 2020
	Class A		Class B			Class A		Class B
Numerator:
Net income allocated, basic	$	8,431	$	2,398		$	11,892	$	3,390
Conversion of Class B to Class A shares	2,398		—			3,390		—
Effect of share-based compensation on allocated net income	—		—			—		—
Net income allocated, diluted	$	10,829	$	2,398		$	15,282	$	3,390

Denominator:
Weighted average shares outstanding, basic	9,789		4,294			9,775		4,294
Conversion of Class B to Class A shares	4,294		—			4,294		—
Weighted average shares outstanding, diluted	14,083		4,294			14,069		4,294

	13 Weeks Ended					39 Weeks Ended
	April 27, 2019					April 27, 2019
	Class A		Class B			Class A		Class B
Numerator:
Net income allocated, basic	$	3,770	$	1,076		$	14,237	$	4,083
Conversion of Class B to Class A shares	1,076		—			4,083		—
Effect of share-based compensation on allocated net income	5		(1		)	—		(1		)
Net income allocated, diluted	$	4,851	$	1,075		$	18,320	$	4,082

Denominator:
Weighted average shares outstanding, basic	9,756		4,294			9,737		4,300
Conversion of Class B to Class A shares	4,294		—			4,300		—
Dilutive effect of share-based compensation	17		—			—		—
Weighted average shares outstanding, diluted	14,067		4,294			14,037		4,300

Outstanding stock options to purchase Class A shares of 159 and 163 were excluded from the calculation of diluted net income per share at April 25, 2020 and April 27, 2019, respectively, as a result of their anti-dilutive effect. In addition, 397 and 314 non-vested restricted Class A shares, which are considered participating securities, and their allocated net income were excluded from the diluted net income per share calculation at April 25, 2020 and April 27, 2019, respectively, due to their anti-dilutive effect.